Mandatory national address for shipments: An expert explains the importance and risks
Engineer Khaled Al-Ghamdi, an expert in supply chains and logistics, affirmed that the decision to mandate the use of the national address for postal shipments represents a strategic turning point in the development of the transportation and logistics sector in the Kingdom of Saudi Arabia. He explained that this step ends a long era of individual and haphazard approaches to delivery operations, establishing a new phase of operational efficiency and meticulous accuracy that keeps pace with the rapid growth of e-commerce.
The context of the logistics transformation and Vision 2030
This decision comes within the framework of the Kingdom's ongoing efforts to achieve the goals of Vision 2030, which aims to transform Saudi Arabia into a global logistics hub connecting three continents. The National Address is the essential digital infrastructure that enables the automation of logistics operations, replacing the traditional location descriptions that relied on changing landmarks, and providing a unified spatial language used by all government and private entities.
A radical solution to the challenges of the "last mile"
Al-Ghamdi pointed out that this new regulation directly addresses one of the most complex problems in the world of logistics, known globally as the "last mile delivery" problem. This stage typically accounts for the largest share of shipping costs and delivery delays due to inaccurate addresses. Thanks to the mandatory national address system, the phenomenon of repeated calls to customers to inquire about the location will disappear, and shipment return rates will decrease significantly. This will save retailers and shipping companies enormous operational costs, which will positively impact the prices of services offered to the end consumer.
Risks of non-compliance and proposed solutions
The logistics expert warned that neglecting to update or accurately enter the national address could lead to a backlog of shipments in carriers' warehouses, disrupting supply chains and delaying the arrival of goods. To overcome this obstacle, Al-Ghamdi proposed a technical solution: mandatory linking of electronic payment gateways with the national address fields in online stores. This would ensure that purchases are only completed with a valid address, guaranteeing the smooth flow of logistics.
The future of the sector under the new legislation
Al-Ghamdi concluded his remarks by praising the regulatory movement led by the Public Transport Authority, stressing that publishing performance indicators and updating legislation enhances the transparency of the sector and increases the confidence of both investors and consumers, thus placing the Kingdom among the leading countries in the quality of logistics services.
